LIC New Jeevan Anand Bonus Calculator

Read along to know how the LIC Jeevan Anand bonus is calculated using the LIC Jeevan Anand calculator.

Bonus Details for LIC New Jeevan Anand

• The LIC New Jeevan Anand Plan is participating in nature. This means that the plan participates in the profits of the company.

• Based on the profits earned, the guaranteed benefits at maturity or death increase by the bonus amounts added to the policy.

• The accrued bonus can be calculated using the LIC Jeevan Anand Bonus Calculator.

• Simple reversionary bonuses and final additional bonuses are the two types that are added to the final payable amount.

• These are not guaranteed additions and depend entirely on the profits earned by LIC in a financial year.

• LIC bonus rates are declared for each policy at a rate per Rs.1000 sum assured.

Types of Bonuses in LIC Jeevan Anand Policy

Like most LIC policies, the LIC Jeevan Anand policy also offers 2 types of bonuses, after declaration, with the policy’s final payout. Those are:

• Simple Reversionary Bonus:
  A Simple Reversionary Bonus is a regular bonus declared annually by LIC for participating policies. It is added to the policy each year (as long as premiums are paid), and once declared, it becomes a guaranteed part of the policy benefits. This bonus accumulates over the policy term and is paid out either on maturity or in case of death. If the policy is surrendered early, the surrender value of these vested bonuses (if any) is paid, as per LIC’s rules.

• Final Additional Bonus:
  The Final Additional Bonus is a one-time bonus that may be declared at the end of the policy term or upon the policyholder’s death during the term. It’s a one-time extra benefit and is given only if the policy is active. The amount depends on the profits generated from LIC’s financial performance. This type of bonus plays an important role in the overall payout and is considered in the LIC bonus calculation done at the end of the term.

LIC Jeevan Anand Bonus Rates

LIC of India has declared the latest bonus rates for Jeevan Anand for the financial year ending 31st March 2021.

How is the LIC Bonus for Jeevan Anand Calculated?

The LIC Jeevan Anand bonus can be calculated as:

Bonus Rate x (Sum Assured / 1000) x Policy Term

Example - Say a 30-year old individual bought the Jeevan Anand policy for a sum assured of Rs.10 Lakhs and a policy term of 20 years. The applicable bonus rate will be Rs.42 per Rs.1000 sum assured (see table above).

Therefore, your accrued bonus for the whole policy term in LIC Jeevan Anand will be equal to:

42 x (10,00,000/1,000) x 20 = Rs.8,40,000

Let’s see a detailed benefit illustration to see how much a policyholder will be entitled to at the time of death or maturity.

Benefit Illustration for LIC New Jeevan Anand

Using the LIC Jeevan Anand calculator, here is how bonus is calculated in LIC Jeevan Anand plan:

1. If the policyholder dies in the 10th year of the policy term

   Nominees can claim the sum assured on death plus accrued bonuses till the 10th year.

   1. Sum assured on death will be the higher of 125% of the Basic Sum Assured or 7 times the annual premium.

   2. The annual premium for the above coverage comes out to be Rs.60,799 using the LIC calculator. Therefore, 7 times the annual premium will be Rs.4,25,593.

   3. Now because 125% of the basic sum assured (Rs.12.5 Lakhs) is higher, LIC will pay this amount to the nominee.

   4. Bonus accrued till the 10th year will be equal to 42 x (10,00,000/1,000) x 10 = Rs.4,20,000

   The total death benefit will be equal to Rs.(12,50,000 + 4,20,000) = Rs.16,70,000.

2. If the policyholder survives the 20 years of the policy term

   The policyholder gets the sum assured on maturity plus accrued bonuses till the 20th year.

   1. Sum assured on maturity is equal to the basic sum assured, which is Rs.10 Lakhs.

   2. Accrued bonus amount for 20 years will be equal to Rs.8,40,000.

   The total maturity benefit will be equal to Rs.(10,00,000 + 8,40,000) = Rs.18,40,000

   Using the new LIC Jeevan Anand calculator, you can get a detailed illustration of maturity or death payout, bonus amounts and other benefits payable in the LIC New Jeevan Anand policy.

Exclusions & Restrictions in Jeevan Anand LIC Bonus Calculation

There are a few instances in which bonus amounts under LIC policies, including the Jeevan Anand plan, will be done differently from the above methods, or not at all. LIC bonus calculation may be influenced in cases of:

• Paid-Up Policy: If the premiums are not duly paid, the policy will not participate in the company's future profits, even if it has an acquired paid-up value. There will be no Final Additional Bonus payable; however, the vested Simple Reversionary Bonuses, if any, will be added to the final payout.

• Policy Surrender: If the policy has been surrendered, only the surrender value of vested bonuses, if any, will be paid. It will be applicable from the date of surrender.

• Exclusion in case of Suicide: If the life assured (whether sane or insane) commits suicide, no bonus will be paid in the final payout.

Conclusion

The new LIC Jeevan Anand is a perfect blend of protection and savings components under a single plan. The new LIC Jeevan Anand Bonus calculator uses the basic sum assured and the policy term to estimate the bonus amount. The bonus rates keep changing every year, and therefore, policyholders need to keep checking them.

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